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Recapitalization Pros and Cons
August 18, 2020 / in Exit Planning, Sell a Business / by Al Statz
When we talk about recapitalization, we’re talking about a partial sale of a company that allows the owner to liquidate some of the value they have in their business. Typically, this involves selling a part of your equity (usually 70-80%) to a third-party, however some business owners do sell just a minority stake. Recapitalizations are a standard investment tool for private equity firms. They have investor dollars they need to put to work and a …
M&A Advisor Tip: COVID-19 Era Due Diligence, Part 3
August 18, 2020 / in Acquire a Business, Sell a Business / by Al Statz
M&A buyers are still active in the midst of this uncertain business environment. However, they are mindful of added risks caused by COVID-19. These are some contract-related questions that are likely to come up in future due diligence in light of COVID-19: Did the business default on any third-party agreements? What are the termination rights on key contracts? Are counterparties adhering to their contract obligationss? Were terms modified or waived in a way that would …
Winery Valuation 101
August 12, 2020 / in Business Valuation / by Joe Orlando
It was either Churchill or Napoleon who said that “in victory you deserve champagne, in defeat you need it.” In a post-COVID world, consumers certainly haven’t admitted defeat but they’ve taken to wine to deal with the “next” normal. Case in point; wine sales (along with beer, hard seltzer and distilled spirits) are up…big. Whether you are a producer making an Estate Pinot Noir from grapes on your Russian River vineyard or a consumer searching …
Exit Strategies Adds Machinery & Equipment Appraisal Services
August 11, 2020 / in Business Valuation, News / by Joe Orlando
Exit Strategies Group, Inc. (ESGI) is pleased to announce that we are expanding our valuation services offering to include Machinery and Equipment Appraisals, also referred to as asset appraisals. Asset appraisals can be an adjunct to a business valuation, or provided as a stand-alone service. Adam Wiskind, CBI, CMEA will be leading this practice out of our San Francisco Bay Area (Sonoma County) office. Our appraisers are Certified Machinery & Equipment Appraisers (CMEA) through the …
M&A Advisor Tip: COVID-19 Era Due Diligence, Part 2
August 4, 2020 / in Exit Planning, Sell a Business / by Al Statz
M&A buyers are still active in the midst of our uncertain environment. However, they are mindful of added risks caused by COVID-19. These are some technology-related questions that are likely to come up in future due diligence due to COVID-19: Do employees have the ability to work remotely – without frustrating workarounds? Does the IT system have sufficient capacity to support remote operations? Are further developments necessary to sustain a long-term virtual environment? Are security …
M&A Advisor Tip: COVID-19 Era Due Diligence, Part 1
July 21, 2020 / in Acquire a Business, Exit Planning, Sell a Business / by Al Statz
M&A buyers are still active in the midst of uncertainty. However, as you would expect, they are mindful of added risks caused by COVID-19. Talent-related questions that may come up in future due diligence due to COVID-19: Did layoffs or other cuts impact the business’s ability to retain key employees? Did the business comply with state and federal laws related to layoffs and furloughs? How is employee health and well-being managed? Are policies and practices …
Why Your Business Needs Google Reviews
July 15, 2020 / in Business Strategy / by Exit Strategies
For many businesses today, online reviews are a differentiator. In the past, people asked for references to vet a product or service. Today, they are more likely to conduct their own research and read online reviews. Google reviews can give businesses a credibility boost, for free. Let’s look at some of the key benefits. Increased Credibility & Trust According to statistics, approximately 91% of consumers read reviews to determine credibility of a local business, and …
Use Equity Incentive Plans to Boost Exit Value
July 13, 2020 / in Business Strategy, Exit Planning / by Al Statz
Closely-held business owners often use equity and equity-like programs to attract and retain key employees and incentivize them to boost profits and build enterprise value. These plans provide value to the employees through current profit sharing and/or future equity appreciation. I am a strong proponent of utilizing these types of incentive plans as part of an exit strategy. Let’s break this down. Why profit sharing for key contributors? Sharing company profits with key employees incentivizes …
Methods of Selling Distressed Businesses
July 6, 2020 / in Acquire a Business, Sell a Business / by Al Statz
As most companies transition from survival to rebuild mode in the second half of this year, some will become financially distressed and the owners will want to move on. Fortunately, for the shareholders and creditors of these companies, there is an active market for distressed business assets. Distressed businesses can be attractive acquisition targets for strategic buyers, and sellers can optimize financial outcomes through a proactive M&A sale process. Financial distress is a term in …
M&A Advisor Tip: M&A in a Virtual Environment
June 29, 2020 / in Sell a Business / by Exit Strategies
Due to ongoing concerns over coronavirus, virtual meetings will continue to replace most of the in-person meetings typically held between a buyer and a seller at some stage in the business sale/acquisition process. When selecting an M&A advisor, be sure that they can help you best present your business in a virtual environment and run effective remote team meetings. And ask about their investment in virtual deal room technology. Virtual deal rooms store sensitive information, …
Exit Strategies Group, Inc. is a leading provider of business sales and acquisitions, business valuations, and exit planning services for family owned and closely-held companies since 2002.
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